COMPARATIVE ANALYSIS OF JOB ANALYSIS OF PRIVATE SECTOR AND PUBLIC SECTOR

1. Presented By:
X
COMPARATIVE ANALYSIS OF JOB ANALYSIS OF
PRIVATE SECTOR AND PUBLIC SECTOR
Presented To:
PIMG

2. JOB ANALYSIS
Job analysis is the process of studying and collecting
information relating to the operations and
responsibilities of a specific job.
-K. Aswathappa
 Right Person for the
 Right Job at the
 Right Time and In a
 Right Place.

3. COMPONENT OF JOB
ANALYSIS
There are two components in job analysis.
1) Job description
2) Job specification
 Job Description
The minimum skills, education, and experience necessary for an individual
to perform a job.
 Job Specification
A written summary of tasks, duties and responsibilities of a job.

4. JOB ANALYSIS
Job Title Qualifications
Working Hours Qualities
Duties & Responsibilities Experience
Working Conditions Family Background
Salaries & Incentives Training
Job Description Job Specification

5. PUBLIC SECTOR
 The sector, which is engaged in the
activities of providing government goods
and services to the general public is
known as Public Sector.
 The enterprises, agencies, and bodies are
fully owned, controlled and run by the
Government whether it is central
government, state government or a local
government.

7. It is the largest sector, which works for the upliftment of the
people by providing the following services to the people:
 Generation of employment opportunities
 Postal services
 Providing education and health facilities at low cost
 Providing security
 Railway service
PUBLIC SECTOR

8. PRIVATE SECTOR
 The segment of a national
economy that is owned,
controlled and managed by
private individuals or enterprises
is known as Private Sector.

10.  Although in private sector performance is the basic criterion for job
stability, i.e. if you perform well you will get promoted and if you
won’t, you will be terminated. The major services provided by the
Private sector are as under:
 Quality education
 Telecommunication services
 IT services
 Courier Services
 Infrastructure development
PRIVATE SECTOR

11. COMPARISON BETWEEN PRIVATE
AND PUBLIC SECTOR
1. Ownership
 Public sector companies are
owned and managed by
Government/Ministries/State
Govt./Govt. Bodies
 Private sector companies are
owned and managed by Private
Individuals and Private
Companies.
On the basis of some point we compare both sectors.

12. 2. PRIMARY PURPOSE
 Generally, Public Sector entities are driven by
the purpose of providing the basic public
services to the common public at a reasonable
cost in their respective industries by being also
self-sustainable and profitable.
However, profitability is not the primary
motive.
 The purpose of Companies in the Private
Sector is profit-making by operating within the
rules and compliances of the respective
country.

13. 3. INDUSTRY FOCUS
 Public sector companies mostly
operate in industries such as Water,
Electricity, Education, Oil & Gas,
Mining, Defence, Banking, Insurance,
and Agriculture, etc
 Private Sector companies generally
operate in multiple industries such as
Technology, Banking, Financial
Services, Manufacturing,
Pharmaceuticals, Real Estate,
Constructions, etc

14. 4. FINANCIAL SUPPORT FROM
GOVERNMENT
 Companies in Public Sector gets all
possible financial support for
Government even in adverse
circumstances wherein the financial
health of the companies are not good.
 Very little or no financial support from
the Government unless a private entity
is too big and systemically important
for the Country.

15. 5. JOB SECURITY
• Government sector employers are bound by
employee protection which makes it imperative
for them to show valid cause of conduct
violation in order for a termination to be
executed.
 Private sector jobs are only protected against
inappropriate terminations based on gender,
race, religion, and other politically incorrect
factors.
 Private sector < 4.2% safer for government
employees during non-recession years, it could
reach up to a difference in 6.5% safety net
during recession years

16. 6. JOB GROWTH
 Government jobs are notorious
when it comes to growth.
Promotions are usually time
based and performance though
important, is only one of the
factors.
 Private sectors are well-known
for their regard to performance
and employee motivation

17. 7. JOB OPPORTUNITIES
 Applications are entertained in a set
amount of time and almost all positions
require an entrance examination,
competing with a rather large number of
candidates from all across the nation.
 Private company jobs are filled based on
demand and recruitment drives happen all
year long as long as there is a need for
new blood

18. 8. JOB SALARIES
• Government jobs have quite
competitive entry-level salaries.
 The difference, when it comes to
compensation, is really not so much in
the salary itself but rather the time it
takes to make the big bucks.
 Promotions, and appraisals, following a
snail’s pace are often outrun by the
faster career curve offered by the
private sectors.

19. 9. PROFITABILITY
 Companies in Public Sector are
relatively less profitable because
of their primary purpose of not
being profitability driven.
 Companies in the Private Sector
are relatively more profitable
than their public sector
counterparts in the same industry.

20. 10. GOVERNMENT INTERFERENCE
 Since Public Sector companies are
owned by Government, therefore
they are subject to the
uncertainties related to
unfavorable Government
decisions and larger Government
interference.
 Private Sector entities are
relatively less exposed to
Government interference.

21. 11. EASE OF DOING BUSINESS
 Public Sector companies find is
relatively easy to operate in a country
because of its proximity to the
Government
 Private Sector companies find is
relatively difficult to operate and
manage the regulatory issues and
compliance in a country in comparison
to Public Sector companies

22. 12. RESOURCE MOBILIZATION
(FUNDING)
 Better placed to raise funds from the
market because of backup by
Government irrespective of the
company’s financial health.
 Depends upon the financial strength
of the private sector entity. Stronger
the financials, better capacity to
mobilize fund from the market.

23. 13. WORK CULTURE FOR EMPLOYEES
 Relatively relaxed work culture
with higher job security. However,
pay and perks may not be that
attractive in comparison to private
sector companies.
 Competitive work culture with
performance-based career growth
and better pay in comparison to
public sector companies.

24. COMPARISON CHART
BASIS FOR
COMPARISON
PUBLIC SECTOR PRIVATE SECTOR
Meaning The section of a nation's economy, which
is under the control of government,
whether it is central, state or local, is
known as the Public Sector.
The section of a nation's
economy, which owned and
controlled by private individuals
or companies is known as Private
Sector.
Basic objective To serve the citizens of the country. Earning Profit
Raises money from Public Revenue like tax, duty, penalty etc. Issuing shares and debentures or
by taking loan
Areas Police, Army, Mining, Health,
Manufacturing, Electricity, Education,
Transport, Telecommunication,
Agriculture, Banking, Insurance, etc.
Finance, Information
Technology, Mining, Transport,
Education, Telecommunication,
Manufacturing, Banking,
Construction, Pharmaceuticals
etc.
Benefits of working Job security, Retirement benefits,
Allowances, Perquisites etc.
Good salary package,
Competitive environment,
Incentives etc.
Basis of Promotion Seniority Merit
Job Stability Yes No

25. CONCLUSION
 Public sector and private sector is basically differentiated by the nature of the
ownership and their purpose of existence.
 The businesses operating in both the public and private sectors are critical to
the economy of any country and co-exist in the economy.
 There are certain industries wherein it makes sense for the Government to take
ownership and manage the businesses in that industry. Industries like defense
wherein many things are sensitive from the national security point of view are
owned and managed by Government. Having said that the private sector makes
a large part of an overall economy of any country and of late they have been
participating in almost all businesses/industries at multiple levels of the value
chain.